Clean Diesel Technologies Inc. (CDTI, Financial) filed Quarterly Report for the period ended 2012-09-30.
Clean Diesel Technologies, Inc. has a market cap of $19 million; its shares were traded at around $2.66 with and P/S ratio of 0.3.
Total revenues for our Catalyst division for the three months ended September 30, 2012 increased $0.3 million, or 3.3%, to $6.7 million from $6.4 million for the three months ended September 30, 2011. Excluding intercompany revenue, sales for this division increased 46.7% to $5.7 million for the three months ended September 30, 2012 as compared to $3.9 million for the three months ended September 30, 2011. The increase was in part due to the recognition of $1.0 million in revenue upon completion of performance under a contract to provide equipment, engineering and support services to assist our investment partner in the Asia Pacific, TKK, in establishing operations in China to manufacture automotive and exhaust emission products for the China market. The remaining increase was due to an increase of $1.0 million in sales to our Japanese OEM customer due to higher vehicle shipments, expansion of our catalysts onto new vehicle platforms, increased purchasing by the customer to build an initial stock of parts for a new model and rare earth material price increases that were passed on to the customer. This was partially offset by reductions of $0.2 million in sales to other OEM customers for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011. We eliminate intercompany sales by the Catalyst division to our Heavy Duty Diesel Systems division in consolidation.
Revenues for our Heavy Duty Diesel Systems division for the nine months ended September 30, 2012 increased $2.2 million, or 7.2%, to $32.3 million from $30.1 million for the nine months ended September 30, 2011. The increase was due to increased retrofit sales of $2.5 million partially offset by decreased non-retrofit sales of $0.3 million. Retrofit sales increased $4.0 million in the London LEZ and decreased $1.5 million in North America. Significant programs in North America included California, New Jersey and Texas. California sales of $6.2 million continued to be weak compared to expectations and were down $1.5 million year over year as we benefited from a CARB early compliance incentive program which was implemented in the second and third quarters of 2011. Sales increased $3.0 million under the New Jersey Department of Environmental Protection Mandatory Diesel Retrofit Program, increased $1.0 million for the retrofit of school buses in the State of Texas and decreased $4.0 million related to the retrofit of school buses in New York and other northeastern states. Non-retrofit sales decreased due to declines in European material handling sales and North American sales to OEMs and integrators.
Revenues for our Catalyst division for the nine months ended September 30, 2012 increased $4.2 million, or 27.9%, to $19.2 million from $15.0 million for the nine months ended September 30, 2011. Excluding intercompany revenue, sales for this division increased $5.6 million, or 55.5%, to $15.8 million for the nine months ended September 30, 2012 as compared to $10.2 million for the nine months ended September 30, 2011. The nine months ended September 30, 2012 includes the recognition of $1.0 million in revenue upon completion of performance under the contract with TKK, as discussed above. The remaining increase was due to an increase in sales to our Japanese OEM customer of $6.0 million, of which $1.2 million was as a result of increased prices of rare earth raw materials that were passed on to the customer. This was offset by a reduction of $1.4 million in sales to other OEM customers for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. We eliminate intercompany sales by the Catalyst division to our Heavy Duty Diesel Systems division in consolidation.
Cash provided by operating activities in the nine months ended September 30, 2012 was $0.8 million, an increase of $14.3 million from the nine months ended June 30, 2011, when our operating activities used $13.5 million of cash. The increase in cash provided by operations was due to a $13.6 million increase in cash provided related to the change in net operating assets and liabilities, $0.5 million decrease in net loss from continuing operations, after giving consideration to non-cash operating items, and $0.2 million increase in cash provided by discontinued operations. Non-cash operating items in both periods include depreciation and amortization, stock-based compensation, the change in valuation of liability-classified warrants, non-cash interest expense and foreign exchange gain or loss and amortization of deferred financing costs. The decrease in net loss from continuing operations was primarily due to an increase in product sales and lower operating expense partially offset by lower margins related to product sales mix in the Heavy Duty Diesel division, the impact of rare earth price increases in the Catalyst division and the write-down of inventory related to the London LEZ program. Cash provided related to the change in net operating assets and liabilities was $6.0 million in the nine months ended September 30, 2012 as compared to $7.6 million in cash used related to changes in net operating assets and liabilities in the nine months ended September 30, 2011. The increase in cash provided is primarily due to a $9.4 million increase in cash provided related to the change in inventories primarily due to the decline in the London LEZ project and to a $8.3 million increase in cash provided related to the change in accounts receivable due primarily to collections on fourth quarter 2011 sales in the Heavy Duty Diesel Systems business partially offset by a $3.8 million decrease in cash provided related to the change in accounts payable due to the wind down of the London LEZ project and timing of purchases of key raw materials.
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Clean Diesel Technologies, Inc. has a market cap of $19 million; its shares were traded at around $2.66 with and P/S ratio of 0.3.
Highlight of Business Operations:
Our Heavy Duty Diesel Systems division includes on-road diesel retrofit business most often driven by increasingly stringent emission regulations as well as product applications sold on an OEM and aftermarket basis with applications for the reduction of exhaust emissions of off-road and stationary engines and licensing revenue. Revenues for our Heavy Duty Diesel Systems division for the three months ended September 30, 2012 decreased $2.4 million, or 21.6%, to $8.7 million from $11.1 million for the three months ended September 30, 2011. The decrease was due to decreased retrofit sales of $1.6 million and decreased non-retrofit sales of $0.8 million. Retrofit sales declined $1.1 million in the London LEZ and $0.5 million in North America. Significant programs in North America included California and New Jersey. California sales of $1.7 million continued to be weak compared to expectations and were down $2.2 million year over year as we benefited from a CARB early compliance incentive program which was implemented in the second and third quarters of 2011. This decline was partially offset by growth driven by sales in the New Jersey Department of Environmental Protection Mandatory Diesel Retrofit Program and in other retrofit programs in North America. Non-retrofit sales decreased due to declines in sales of standard exhaust parts in North America, European material handling sales and North American sales to OEMs and integrators.Total revenues for our Catalyst division for the three months ended September 30, 2012 increased $0.3 million, or 3.3%, to $6.7 million from $6.4 million for the three months ended September 30, 2011. Excluding intercompany revenue, sales for this division increased 46.7% to $5.7 million for the three months ended September 30, 2012 as compared to $3.9 million for the three months ended September 30, 2011. The increase was in part due to the recognition of $1.0 million in revenue upon completion of performance under a contract to provide equipment, engineering and support services to assist our investment partner in the Asia Pacific, TKK, in establishing operations in China to manufacture automotive and exhaust emission products for the China market. The remaining increase was due to an increase of $1.0 million in sales to our Japanese OEM customer due to higher vehicle shipments, expansion of our catalysts onto new vehicle platforms, increased purchasing by the customer to build an initial stock of parts for a new model and rare earth material price increases that were passed on to the customer. This was partially offset by reductions of $0.2 million in sales to other OEM customers for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011. We eliminate intercompany sales by the Catalyst division to our Heavy Duty Diesel Systems division in consolidation.
Revenues for our Heavy Duty Diesel Systems division for the nine months ended September 30, 2012 increased $2.2 million, or 7.2%, to $32.3 million from $30.1 million for the nine months ended September 30, 2011. The increase was due to increased retrofit sales of $2.5 million partially offset by decreased non-retrofit sales of $0.3 million. Retrofit sales increased $4.0 million in the London LEZ and decreased $1.5 million in North America. Significant programs in North America included California, New Jersey and Texas. California sales of $6.2 million continued to be weak compared to expectations and were down $1.5 million year over year as we benefited from a CARB early compliance incentive program which was implemented in the second and third quarters of 2011. Sales increased $3.0 million under the New Jersey Department of Environmental Protection Mandatory Diesel Retrofit Program, increased $1.0 million for the retrofit of school buses in the State of Texas and decreased $4.0 million related to the retrofit of school buses in New York and other northeastern states. Non-retrofit sales decreased due to declines in European material handling sales and North American sales to OEMs and integrators.
Revenues for our Catalyst division for the nine months ended September 30, 2012 increased $4.2 million, or 27.9%, to $19.2 million from $15.0 million for the nine months ended September 30, 2011. Excluding intercompany revenue, sales for this division increased $5.6 million, or 55.5%, to $15.8 million for the nine months ended September 30, 2012 as compared to $10.2 million for the nine months ended September 30, 2011. The nine months ended September 30, 2012 includes the recognition of $1.0 million in revenue upon completion of performance under the contract with TKK, as discussed above. The remaining increase was due to an increase in sales to our Japanese OEM customer of $6.0 million, of which $1.2 million was as a result of increased prices of rare earth raw materials that were passed on to the customer. This was offset by a reduction of $1.4 million in sales to other OEM customers for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. We eliminate intercompany sales by the Catalyst division to our Heavy Duty Diesel Systems division in consolidation.
Cash provided by operating activities in the nine months ended September 30, 2012 was $0.8 million, an increase of $14.3 million from the nine months ended June 30, 2011, when our operating activities used $13.5 million of cash. The increase in cash provided by operations was due to a $13.6 million increase in cash provided related to the change in net operating assets and liabilities, $0.5 million decrease in net loss from continuing operations, after giving consideration to non-cash operating items, and $0.2 million increase in cash provided by discontinued operations. Non-cash operating items in both periods include depreciation and amortization, stock-based compensation, the change in valuation of liability-classified warrants, non-cash interest expense and foreign exchange gain or loss and amortization of deferred financing costs. The decrease in net loss from continuing operations was primarily due to an increase in product sales and lower operating expense partially offset by lower margins related to product sales mix in the Heavy Duty Diesel division, the impact of rare earth price increases in the Catalyst division and the write-down of inventory related to the London LEZ program. Cash provided related to the change in net operating assets and liabilities was $6.0 million in the nine months ended September 30, 2012 as compared to $7.6 million in cash used related to changes in net operating assets and liabilities in the nine months ended September 30, 2011. The increase in cash provided is primarily due to a $9.4 million increase in cash provided related to the change in inventories primarily due to the decline in the London LEZ project and to a $8.3 million increase in cash provided related to the change in accounts receivable due primarily to collections on fourth quarter 2011 sales in the Heavy Duty Diesel Systems business partially offset by a $3.8 million decrease in cash provided related to the change in accounts payable due to the wind down of the London LEZ project and timing of purchases of key raw materials.
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